1. Three types of machine are being considered in your operations with the following cash flow pattern: MACHINE A MACHINE B MACHINE C Investment P1,000,000 600,000 300,000 Life 8 years 4 years 2 years Salvage value 80,000 40,000 20,000 Annual costs 300,000 (1st 4 years) 250,000 150,000 400,000 (last 4 years) Annual revenues 600,000 (1st 5 years) 500,000 400,000 500,000 (last 3 years) Interest rate/year – 15% Will you invest in this machine? If so, which type? Use PW method. 

2. The monthly sales forecast of a snack food is 450,000 cartons with a selling price of P400/ctn. Each carton contains 50 pouches weighing 50 grams/pouch. The factory is working 24 hrs./day at 25 days/month. Given the following capacities of the required machines and the raw materials needed, how many of each machine and raw material would you recommend to purchase? How many factory workers are needed in a 3-shift?

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Using excel to solve this Revenue and salvage value has been taken negative as it i... View the full answer